When deciding whether or not to take a trade discount, the cost of borrowing funds should be compared to the effective annual rate (EAR) of trade credit to determine if the cash discount should be taken. True False

When deciding whether or not to take a trade discount, the cost of borrowing funds should be compared to the effective annual rate (EAR) of trade credit to determine if the cash discount should be taken. True False

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section: Chapter Questions

Problem 3DTM

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When deciding whether or not to take a trade discount, the cost of borrowing funds should be compared to the effective annual rate (EAR) of trade credit to determine if the cash discount should be taken.

True

False

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